Pre-Budget Report 2009
The main focus of the Pre-Budget Report on 9 December was the announcement of a new 50% supertax on bank bonuses. The new tax is to apply to all discretionary bonuses over £25,000 paid to certain bank employees and in fact has much wider application than originally anticipated, applying not just to banks but to a lot of other financial institutions as well. However, there is much uncertainty as to the scope of the tax and further clarification will hopefully follow.
This tax is is effective now and will be in force for a limited period until 6 April 2010, after which time the 50% income tax rate will be in force. However, the Government may consider extending the period for which the charge applies.
For further information on this and the other personal tax highlights of the Pre-Budget Report, please click on the PDF link below.
